"Acquisition activity :  an acquisition  or takeover is the purchase of one business or company by another company or other business entity. Through myriad avenues including market research, trade expos, sent up from internal business units, or supply chain analysis specific acquisition targets can be identified. They are divided into private & public acquisitions, which depends on whether the acquirer or merging company which is also called as target is or is not listed on a public stock market. Also, some of the public companies rely on acquisitions as an important value creation strategy and an additional dimension or categorization consists of whether an acquisition is hostile or friendly.

Financing strategy:

There are two types of financing : 

Equity and debt are the two sources of financing accessible in capital markets. And, capital structure refers to the overall composition of a company's funding and alterations to capital structure can impact the cost of capital, the net income, the leverage ratios, and the liabilities of publicly traded firms.

Equity financing is the raising of money by selling new shares of stock which although has no impact on a firm's profitability, can dilute existing shareholders' holdings, as the company's net income is divided among a larger number of shares. So, when a company raises funds through equity financing, a positive item is there in the cash flows from financing activities section and an increase of common stock at par value on the balance sheet.

Debt Financing is if a firm raises funds through debt financing, there is a positive item in the financing section of the cash flow statement as well as an increase in liabilities on the balance sheet. This financing includes principal, which must be repaid to lenders or bondholders, and interest. The financing often comes with covenants, i.e. a firm must meet certain interest coverage and debt-level requirements and in the event of a company's liquidation, debt holders are senior to equity holders."